<p>The increasing environmental concerns and stringent regulations on petroleum-based lubricants have accelerated the demand for sustainable alternatives with enhanced biodegradability, lower toxicity, and improved performance. Despite significant research efforts, the biolubricant sector remains fragmented, with studies often focusing on isolated aspects such as feedstock selection, chemical modifications, or performance evaluations. This review discusses the recent advancements in biolubricant production, integrating insights on raw material selection, chemical modification techniques, and performance enhancement strategies to provide a deeper perspective. Various feedstocks, including vegetable oils, animal fats, and microbial sources, have been investigated, with chemical modifications such as transesterification, epoxidation, and esterification improving oxidative stability, viscosity, and tribological performance. Additionally, nanoparticle additives, including metal oxides and carbon-based materials, have demonstrated the potential to enhance anti-wear properties and reduce friction. However, challenges such as thermal degradation, high production costs, and the limited availability of suitable feedstocks continue to hinder large-scale adoption. Comparative evaluations indicate that while biolubricants exhibit promising lubricity and viscosity indices, issues related to oxidative stability and cold flow properties remain unresolved. Addressing these challenges requires an integrated approach that includes optimizing processing techniques, expanding feedstock diversity, and leveraging innovative catalytic and biorefinery technologies. By consolidating existing knowledge and identifying research gaps, this review aims to guide future developments in biolubricant production and accelerate its transition toward widespread industrial application.</p>